Legal Question in Insurance Law in Florida
Need to pay inheritence tax?
My Uncle recently passed away and my grandmother was the sole beneficiary to his life insurance plan. She is elderly and makes less than twenty-five thousand dollars a year. The policy was for fifteen thousand dollars and she has been using the money to pay off his debts. We would like to know if some of the money needs to be saved for an inheritence tax or any other taxes. Thank you very much.
Jacob Pons
1 Answer from Attorneys
Re: Need to pay inheritence tax?
As a general rule, life insurance is not taxable. There are exceptions, however, depending upon how the policy itself is set up. I suggest that you show the policy to an attorney to determine whether it is "life insurance" as per the definitions of the IRS.
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